Naqia housing project delay concerning

The National National

A housing project of the National Agriculture Quarantine and Inspection Authority (Naqia) at Kila Kila in Port Moresby is yet to be completed despite millions of kina already being spent, according to the Auditor-General’s Report.
Auditor-General Philip Nauga found several issues in relation to this housing project in his 2015 audit with K3.1 million being spent that year and K3.9 million in 2014.
“I noted that the authority’s housing project was still under ‘work in progress’ and not commissioned/certified yet for occupancy,” he said.
“However, this project has been treated as fixed assets and depreciation calculated. This was not in accordance with International Financial Reporting Standards requirement as assets were capitalised and depreciated when it was available for use. Actual total cost of this project recorded at year end (2015) was K3.1 million (2014 – K3.9mil) and the depreciation charges was K0.1mil (K2014: K0.2mil).
“During the 2015 audit, I noted that there were some costs incorrectly classified as ‘Kila Kila Housing Project’ and needed to be reclassified to the correct asset cost centres. I noted that the cost, especially for land and buildings, were not itemised by house but were grouped as one component. For prudent accounting and reporting purposes, it was suggested that itemised accounting by house was recommend.”
Nauga said he recommended that all costs related to the housing project be recorded under ‘work in progress (asset account)’.
“I also stressed that itemised reporting by house be undertaken to assign costs to each house rather than one component as currently reported,” he said.
Nauga also found:

  • No updated contracts and payroll files;
  • No proper records of staff terminations and resignations;
  • Lack of communication between payroll and finance divisions;
  • The fixed assets’ registrar was wanting; and,
  • Naqia had not prepared and submitted its financial statements to the Agriculture and Livestock Minister and the Auditor-General prior to June 30, 2015, resulting in breaches of Section 36 (2) and 63 (4) of the Public Finances (Management) Act 1995.